This is the Easy Read version of this guide. It says the same things as the full guide. The sentences are short. The words are plain. Read the full guide if you want more detail.
Short answer: approval is not the finish line. It is a key. This guide lists what to do next, in order. Open the RDSP. Claim past tax years. Check the other benefits. Protect your approval.
You did it. After the forms and the waiting, the letter arrived and it says approved. Enjoy that. The Disability Tax Credit, or DTC, is one of the most valuable approvals a Canadian with a disability can hold. Too many families file the letter away and stop there, while the biggest money sits unclaimed. Here is what to do next.
Words on this page
- DTC means Disability Tax Credit. It is a tax credit from the Government of Canada. A tax credit lowers the tax you have to pay.
- CRA means Canada Revenue Agency. It is the part of the government that runs taxes and decides DTC applications.
- RDSP means Registered Disability Savings Plan. It is a savings plan for a person with a disability. The government can add grant and bond money to it.
- Grant means money the government adds to an RDSP when you save. It is called the Canada Disability Savings Grant.
- Bond means money the government adds to an RDSP for people with lower incomes. It is called the Canada Disability Savings Bond. You can get bond money even if you save nothing.
- Statement of entitlement is a letter that comes each year. It tells you how much grant room you have for that year.
Step 1: open the RDSP right away
This is step one for a reason. DTC approval is the key that opens the Registered Disability Savings Plan, or RDSP. An RDSP is a long term savings account built for Canadians with disabilities and the families who love them.
Through the RDSP, the federal government can add grants of up to $70,000 over a lifetime and bonds of up to $20,000 over a lifetime. The amounts depend on income and on how much you save.
You can also catch up on years you missed. Unused grant and bond room can be carried forward from up to 10 past years. Catch up grants are capped at $10,500 in a single calendar year. That is why starting sooner gives you more years to work with.
To see the whole plan in plain words, read our Easy Read guide to the RDSP.
Step 2: claim your past tax years
Next, look backwards. DTC approval can often be used for up to 10 past years. The credit may apply to tax returns you already filed.
To fix those returns, you or your tax preparer can file a T1 adjustment request, using Form T1-ADJ, for the years the approval covers. Those changes can produce refunds for some people. Amounts vary, and nothing is guaranteed until the Canada Revenue Agency reviews your file.
One detail matters. Your tax return must be filed for benefits and credits to flow properly. Even in a year with little or no income, filing keeps you connected to those programs. If you have missed years, do not panic. It is common, and catching up is a practical, step by step job.
Step 3: check the Canada Disability Benefit if you are 18 to 64
If you are between 18 and 64, check the Canada Disability Benefit. It adds support for working age Canadians with disabilities, and you need DTC approval to qualify.
The catch: it does not arrive on its own. It has its own separate application. Programs do not always talk to each other, so check each one by name. For the fuller picture, read our Easy Read guide to the Canada Disability Benefit.
Step 4: for parents, look for the child disability benefit
If the approved person in your house is your child, this one is for you. The child disability benefit is a tax free monthly amount. It is added through the Canada child benefit, for families caring for an approved child.
It often follows from your child being eligible for the DTC. But check that it is actually showing up in your payments. Do not assume it started on its own. Look at a recent Canada child benefit notice. Confirm the amount is there. If it is missing, ask why. Asking costs nothing.
Step 5: read your statement of entitlement every year
Once your RDSP is open, a document arrives each year that most people honestly ignore. It is called your statement of entitlement. Please be the person who reads it.
It tells you exactly how much grant room you have for the year, including amounts carried forward. In plain terms, it shows how much you could save that year and attract government grant money.
Without it, families are guessing. With it, you can plan calmly, on paper, before anyone puts a dollar anywhere. Keep each year's statement with your RDSP paperwork. Small habit, big payoff in clarity.
Step 6: watch the expiry date
Some DTC approvals never end. Others are time limited and must be renewed before they run out. Check your letter for an end year. Put that date in your calendar, with room to spare. Renewal takes time and needs a medical practitioner, so early is your friend.
If a DTC approval lapses, RDSP grants and bonds can pause along with it. The whole plan rests on that eligibility. A lapse can mean missed money and needless stress. A simple calendar reminder, set well ahead, is one of the cheapest forms of protection in your financial life. Our Easy Read guide on DTC renewal explains this step by step.
Step 7: tell your future self, and the people who help you
Last step, and it is a human one. Keep your approval letter somewhere safe. Make sure the family members who help you know it exists and where to find it.
If a trusted person ever has to step in and help with your affairs, that letter explains one of the most important facts in the file. Information that lives in only one person's head is information at risk.
So here is the order. DTC first. Then the RDSP. Then past tax years. Then the other benefits your approval unlocks. And each year, keep an eye on your statement of entitlement and your expiry date. You already did the hardest part, which was getting approved. Now, at your own pace, let that one letter do the full job it was meant to do.
New here? Read our Easy Read guide on how the Disability Tax Credit works for the short version of how it all fits together.
Common questions
My DTC was approved. What should I do first?
Open an RDSP. DTC approval is the key that opens it. Inside an RDSP, the government can add up to $70,000 in grants and up to $20,000 in bonds over a lifetime.
Can I claim the DTC for past years?
Often, yes. Approval can usually be used for up to 10 past years. You or your tax preparer can file a T1 adjustment request, using Form T1-ADJ, for the years the approval covers. Refunds are not guaranteed. The CRA reviews each file.
Does the Canada Disability Benefit start on its own?
No. If you are 18 to 64, you must apply for it separately. DTC approval is required, but the benefit does not arrive automatically.
Can my approval run out?
Yes, some approvals are time limited. Check your letter for an end year and put it in your calendar. If approval lapses, RDSP grants and bonds can pause.
This guide is part of our Easy Read guide to the RDSP and the Disability Tax Credit, where the whole plan comes together. See all the guides on the Easy Read page.
See where you stand: the free DTC eligibility checker takes about a minute. It shows whether you, or someone you care for, may qualify for the Disability Tax Credit. No signup, and no pressure.
A quick note: this post is for learning, not financial advice. For guidance on your own situation, book a free conversation. You don't have to figure this out alone. I'm here to help you through every step.